Autoliv Net Income vs. Return On Equity

ALV Stock  USD 97.84  1.64  1.65%   
Based on Autoliv's profitability indicators, Autoliv's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Autoliv's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1997-03-31
Previous Quarter
138 M
Current Value
138 M
Quarterly Volatility
93.8 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
Operating Cash Flow Sales Ratio is likely to climb to 0.10 in 2024, whereas Price To Sales Ratio is likely to drop 0.50 in 2024. At this time, Autoliv's Income Tax Expense is fairly stable compared to the past year. Non Operating Income Net Other is likely to climb to about 3.8 M in 2024, whereas Operating Income is likely to drop slightly above 596 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.220.1738
Significantly Up
Slightly volatile
Operating Profit Margin0.08560.0659
Significantly Up
Slightly volatile
For Autoliv profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Autoliv to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Autoliv utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Autoliv's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Autoliv over time as well as its relative position and ranking within its peers.
  
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For more information on how to buy Autoliv Stock please use our How to Invest in Autoliv guide.
Is Automotive Parts & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Autoliv. If investors know Autoliv will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Autoliv listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.108
Dividend Share
2.72
Earnings Share
7.66
Revenue Per Share
129.3
Quarterly Revenue Growth
(0.02)
The market value of Autoliv is measured differently than its book value, which is the value of Autoliv that is recorded on the company's balance sheet. Investors also form their own opinion of Autoliv's value that differs from its market value or its book value, called intrinsic value, which is Autoliv's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Autoliv's market value can be influenced by many factors that don't directly affect Autoliv's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Autoliv's value and its price as these two are different measures arrived at by different means. Investors typically determine if Autoliv is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Autoliv's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Autoliv Return On Equity vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Autoliv's current stock value. Our valuation model uses many indicators to compare Autoliv value to that of its competitors to determine the firm's financial worth.
Autoliv is rated fifth in net income category among its peers. It is number one stock in return on equity category among its peers . The ratio of Net Income to Return On Equity for Autoliv is about  1,849,886,277 . At this time, Autoliv's Net Income is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Autoliv by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Autoliv Return On Equity vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Autoliv

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
488 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Autoliv

Return On Equity

 = 

Net Income

Total Equity

 = 
0.26
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Autoliv Return On Equity Comparison

Autoliv is currently under evaluation in return on equity category among its peers.

Autoliv Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Autoliv, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Autoliv will eventually generate negative long term returns. The profitability progress is the general direction of Autoliv's change in net profit over the period of time. It can combine multiple indicators of Autoliv, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-496 M-520.8 M
Operating Income690 M596 M
Income Before Tax612 M506.8 M
Total Other Income Expense Net-78 M-81.9 M
Net Income488 M331.4 M
Income Tax Expense123 M165 M
Net Income Applicable To Common Shares486.4 M380.1 M
Net Income From Continuing Ops489 M353.3 M
Non Operating Income Net Other3.6 M3.8 M
Interest Income13 M24.7 M
Net Interest Income-80 M-84 M
Change To Netincome-120.6 M-114.6 M
Net Income Per Share 5.74  6.03 
Income Quality 2.01  3.83 
Net Income Per E B T 0.80  0.80 

Autoliv Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Autoliv. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Autoliv position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Autoliv's important profitability drivers and their relationship over time.

Use Autoliv in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Autoliv position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Autoliv will appreciate offsetting losses from the drop in the long position's value.

Autoliv Pair Trading

Autoliv Pair Trading Analysis

The ability to find closely correlated positions to Autoliv could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Autoliv when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Autoliv - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Autoliv to buy it.
The correlation of Autoliv is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Autoliv moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Autoliv moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Autoliv can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Autoliv position

In addition to having Autoliv in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Israel Wall Street Thematic Idea Now

Israel Wall Street
Israel Wall Street Theme
Cross-sector collection of best publicly traded Israel entities that are expected to continue growing. The Israel Wall Street theme has 71 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Israel Wall Street Theme or any other thematic opportunities.
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Additional Tools for Autoliv Stock Analysis

When running Autoliv's price analysis, check to measure Autoliv's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Autoliv is operating at the current time. Most of Autoliv's value examination focuses on studying past and present price action to predict the probability of Autoliv's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Autoliv's price. Additionally, you may evaluate how the addition of Autoliv to your portfolios can decrease your overall portfolio volatility.